Sterling rises before British GDP data release

Published 4 months ago on 29 June 2018

The pound rose 0.3 per cent to US$1.3114 (RM5.29), off the 7-1/2 month lows of US$1.3050 hit earlier this week. — Reuters pic

LONDON, June 29 ― The pound rose against the dollar today as traders waited for the release of final British economic growth numbers for the first quarter, which if revised higher could lift falling expectations of monetary policy tightening later in the year.

The British economy performed relatively poorly in the first quarter after cold weather hit retail demand and the construction industry, encouraging the Bank of England to delay an interest rate rise and hitting sterling hard.

A Reuters poll of economists expects the first quarter numbers to be unrevised at 0.1 per cent when the data is released at 0830 GMT. Current account numbers are also due.

After a bruising week and month for sterling as worries about the lack of progress in Brexit talks and weakness in the British economy hit the currency, the pound staged a small rebound on Friday.

It rose 0.3 per cent to US$1.3114 (RM5.29), off the 7-1/2 month lows of US$1.3050 hit earlier this week.

Against a euro buoyed by European Union leaders agreeing a deal on migration, the pound slipped 0.3 per cent to 88.655 pence per euro. ― Reuters